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QBE Insurance Group Ltd. stands to become the third-largest writer of direct multiperil crop insurance in the U.S., on a pro forma basis, with its recently announced acquisition of Ramsey, Minn.-based NAU Country Insurance Co. and associated companies, according to SNL data looking at both groups and subgroups.
QBE Insurance said April 16 that it agreed to acquire the NAU Group for $565 million, taking into account NAU Insurance's $217 million of tangible assets.
"The acquisition of NAU is consistent with QBE's long term strategy to buy specialist insurance businesses to enhance product diversification and distribution," QBE said of the deal.
NAU's senior management team will remain with NAU for at least two years pursuant to the deal, which is expected to close in July.
QBE said it expects the deal to be accretive in the first year, with EPS growth for QBE of about 3% to 4% for that period. The...